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Sunday, 4 December 04:11 (GMT -05:00)



Business And Politics News

US Banks Passed Stress Tests


 

US bankin gnews. Stress tests for banks may be called one of the key moments of this week. On Tuesday FRS announced the results of stress tests for banks. Reports show that the majority of large-scale US banks are able to fulfill their obligations in extremely non-favourable economic circumstances. The situation may then develop in the following way:
  • Unemployment growth to 13%
  • Price drop by 50%
  • Drop of housing price by 21%

In such a case, the loss of 19 largest banks would amount to 534 bln. dollars. Despite considerable drop of predicted capital, 15 out of 19 holding banking companies will keep their capital four times higher than its normative value.

According to Aleksei Afanasiev, the head of the Department of Portfolio Investments of Masterforex-V Academy, last week’s macroeconomic data was mostly positive:
1. Retail sales rose by 1.1% in February, taking into consideration seasonal fluctuations. In comparison to February 2011, sales have risen by 6.5%. January sales have risen from 0.4% to 0.6%.

 

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2. Industrial production remained the same. Capacity ratio is falling. It has dropped by 78.7% or by 1.6 points from the average since 1972. Its value is 18.3% lower than before crisis. Capacity ratio in January has been lowered from 78.5% to 78.8%. Industrial output did not change in February. Market consensus was slightly worse than expected.
 

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3. Reports of Philadelphia FRS about national production volume slow minor increase in January. Current activity index in March amounted to 12.5 and showed the increase by 2.3 basic points, which is the maximal point since April 2011. General business index remained almost the same in March and amounted to 20.2.

4. Weekly unemployment claims have dropped to 351 000. The four-week moving average is close to the lowest point since the beginning of 2008.

 

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5. Consumer sentiment index dropped to 74.3 in March from 75.3 in February, which is lower than market consensus. Consumer’s general sentiment is rather weak and does not show certain signs of recovery. Small business index slightly rose in February. It has risen form 93.9 to 94.3, which is the 6th rise in a row. However, the index remains at a rather low point due to slow economic growth.

Rally, which started since the beginning of the year, is getting weaker and casts pressure on investors’ psychology. We are currently observing overbought market, and there remains the only question: “will the future correction amount to 3-5% or 10-15%, or something else?”. We recommend redistributing the portfolio, for we believe that aggressive buying at current points are inappropriate.

 

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Trump's Victory Means Both Risks and Opportunities for Ukraine

Vitaly Portnikov, a Ukrainian political expert, has evaluated the results of the U.S. presidential election and its possible impact on the situation in Ukraine.

 

 
He says that Donald Trump’s victory gives Ukraine both risks and new opportunities. In particular, the Ukrainian journalist, political observer, and blogger writes that after Donald Trump unexpectedly won the election, the entire political world was slightly shocked and uncertain how to react to this unexpected event.
Publication date: 30 November 09:23 AM

UK Prime Minister to Launch Brexit in Spring 2017

The current Prime Minister of the United Kingdom Theresa May gave her first big interview after coming into power a few months ago. During the interview, she warned the people of the United Kingdom about the likelihood of a difficult period they would have to face in the near future. She is almost convinced that the so-called Brexit, or the process of quitting the European Union is going to be economically and financially painful to the UK, its people, economy, national currency, and financial system.
 
Publication date: 29 November 01:18 PM

President-Elect Trump Sets Future Priorities

As you probably know, Donald Trump has won the U.S. presidential election 2016 and is now going to be the 45th President of the United States. Even though he is going to take office in January 2017, he already started setting future priorities as the next U.S. President.

 

 

Publication date: 23 November 10:49 AM

What to Expect in Global Economy from Trump's Victory?

Donald Trump’s victory in the presidential election used to be seen as something unlikely but this unexpected scenario finally manifested itself. Donald Trump is going to become the 45th U.S. President on January 1st, 2017.

 

 
Publication date: 18 November 06:10 AM

Brexit Planned For Early 2017, Theresa May Says

The current Prime Minister of the United Kingdom Theresa May gave her first big interview after coming into power a few months ago. During the interview, she warned the people of the United Kingdom about the likelihood of a difficult period they would have to face in the near future. She is almost convinced that the so-called Brexit, or the process of quitting the European Union is going to be economically and financially painful to the UK, its people, economy, national currency, and financial system.
 
Publication date: 17 November 04:29 AM

Brexit. Who's Next to Quit EU?

Where this is good or not, we can still see the entire political and economic structure of Europe gradually changing. More and more experts, name the countries who may well follow the United Kingdom and hold their own referendums on EU membership.
 
Publication date: 15 November 08:36 AM

Donald Trump Is 45th U.S. President

The Republican candidate Donald Trump has won the U.S. presidential election 2016 and become the 45th U.S. president. The billionaire won the election in most of the states, thereby winning it with a huge lead.

 

 
Publication date: 09 November 04:37 PM

High Court of London Bans Brexit without Parliament's Consent

For those of you who don’t know, the High court of London suspended the so-called Brexit procedure a couple of days ago. To be more specific, the UK government cannot go on with the Brexit and initiate the procedure without the British Parliament’s consent.
 
Publication date: 07 November 11:18 AM

A couple of days before the election, Trump is just 2% behind Clinton

Even though more and more experts are sure about Hillary Clinton’s victory in the forthcoming U.S. presidential election, and even bookmakers think that Hillary Clinton is the frontrunner, the results of the recent surveys show that everything is not that clear. In early October, Mrs. Clinton used to outpace Donald Trump by as much as 12%, today the difference is just 2%. The latest survey was taken on November 1st through 3rd.

Publication date: 06 November 05:29 AM

UK Will Face Hard Times Because of Brexit, Theresa May Says

The current Prime Minister of the United Kingdom Theresa May gave her first big interview after coming into power a few months ago. During the interview, she warned the people of the United Kingdom about the likelihood of a difficult period they would have to face in the near future. She is almost convinced that the so-called Brexit, or the process of quitting the European Union is going to be economically and financially painful to the UK, its people, economy, national currency, and financial system.

Publication date: 03 November 01:06 PM